In our Blog update for today, we’ll be delving into the changes in Australia’s foreign investment application fees. So stay tuned to find out the changes.
The Australian Treasurer declared on 22 July 2022 crucial changes to the Foreign Investment Review Board (FIRB) application fee regime.
The Commonwealth Government delivered the Foreign Acquisitions and Takeovers Fees Imposition Amendment (Fee Doubling) Regulations 2022 (Cth) that will double the FIRB approval fee.
When Will The Fee Increment Come Into Effect?
The raised fees will be applicable to foreign investment notifications and applications submitted on or after 29 July 2022.
If a notifiable action’s notice is given or an application is made before 29 July 2022, the fee payable will be determined by the fee schedule for pre-29 July 2022.
From 29 July 2022, the lowest applicable fee will rise from $2,000 to $4,000, and the highest fee applicable will increase from $522,500 to $1.045 million.
What Are The Latest Fees?
Due to the new regulation, foreign investors might experience significantly higher costs to invest in Australia.
Please bear in mind that the fees will continue to be indexed annually.
The Government has also revealed that it will raise the penalties for non-compliance with the Australian foreign investment laws. The anticipated additions are predicted to double the maximum penalties at present for specific violations of Australia’s foreign investment laws.
So What Must You Do?
Since all foreign investment cases are unique, foreign investors must plan ahead for whether their suggested actions might need the approval of FIRB and budget for the raised cost of pursuing FIRB approval.
Understandably, the rules for calculating the FIRB fees can be tough to navigate. However, investors must identify the accurate fee payable when submitting their FIRB applications. The timeframe for FIRB application consideration only begins once the applicant has paid the appropriate FIRB fee.
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